FIDIC / Legal Reference: FIDIC Red Book Clause 14.13
The final certificate issued by the Engineer following the Performance Certificate, recording the final sum due to the contractor in settlement of all amounts under the contract. The Final Payment Certificate brings the contract financial accounts to a close.
What it means in practice
The process begins with the contractor submitting a Final Statement to the Engineer within 56 days of the Performance Certificate. The Engineer then has 28 days to issue the Final Payment Certificate — certifying the final contract sum.
In some jurisdictions and contract forms, the Final Payment Certificate is treated as conclusive on all matters it covers. Under FIDIC 1999, this conclusiveness is qualified by the ability to refer matters to arbitration.
Where disputes arise
The most common dispute surrounding the FPC is the Engineer’s refusal to issue it — either because the Final Statement is disputed or because the contractor has not fulfilled all its closing obligations. UAE projects commonly see multi-year delays in FPC issuance on large infrastructure projects.
UAE Context
UAE construction projects frequently see protracted final account negotiations that delay FPC issuance by several years. The practical effect is that the contractor’s performance security continues to run long after the project is functionally complete.
Related terms
Final account disputes and Final Payment Certificate entitlement are among the most complex areas of UAE construction law. e-Basel provides specialist advisory and expert witness support.
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